The cost of telephone service : An international comparison of rates in major countries

Abstract

An exhaustive analysis of all 1979 telephone calls in the US Bell System determines market baskets of telephone services consumed by residential subscribers and by business subscribers. Individual calls are classified according to duration, distance, hour and day of week, and type of service. The annual cost of purchasing these market baskets is evaluated using the complete rate structures of nine countries. Telephone service is least expensive in the US and only slightly higher in Canada. Costs in Sweden, the UK and Italy are moderately higher than the USA. The highest rates are found in Japan, the FRG, France and Australia.Telephony Tariffs Economics